Research on Labor Market Institutional Environment and Labor Agglomeration—Analysis Based on Dynamic Spatial Panel Data

The institutional environment not only has a great impact on economic development but also has a certain impact on labor agglomeration. This paper explains the phenomenon of labor agglomeration from the perspective of the labor market institutional environment. Taking the labor market institutional environment including social contract environment and labor contract environment as the premise, it is considered that a good labor institutional market can promote labor agglomeration and technological progress can stimulate the agglomeration of highly-skilled talents through theoretical analysis. Based on the provincial panel data from 2001 to 2017, the empirical analysis is conducted to verify the relevant factors through the dynamic spatial Durbin model. The paper finally puts forward some policy suggestions to maintain a good institutional environment of the labor market, including that the local government should continue to improve the labor dispute settlement system, strengthen the protection of labor rights and interests, and enhance the institutional environment of the regional labor market.